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Equitable Group
(TSX:EQB)
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Rating:52Neutral
Price Target:
C$130.00
▼(-5.71% Downside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by weakened near-term financial performance (profitability disruption and negative TTM cash flows) and bearish technical momentum (below key moving averages with negative MACD). These are partially offset by a constructive earnings outlook tied to PC Financial integration and guidance for improving returns, plus moderate support from the dividend despite a not-cheap P/E.
Positive Factors
PC Financial diversification and integration
The acquisition broadens EQB beyond traditional mortgages through cards, insurance and interchange revenue. Early integration and synergy delivery can improve scale, diversify earnings and strengthen cross-selling over the next several quarters.
Negative Factors
Near-term profitability disruption
The sharp earnings deterioration weakens confidence in near-term profit sustainability, even though revenue has grown. Recovering returns depends on realizing acquisition synergies, controlling expenses and absorbing provision and accounting effects.
Read all positive and negative factors
Positive Factors
Negative Factors
PC Financial diversification and integration
The acquisition broadens EQB beyond traditional mortgages through cards, insurance and interchange revenue. Early integration and synergy delivery can improve scale, diversify earnings and strengthen cross-selling over the next several quarters.
Read all positive factors
Equitable Group (EQB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.70B
Dividend Yield1.75%
Average Volume (3M)116.53K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-3.80%
EPS Growth-102.38%
CountryCA
Employees1,880
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.21
Shares Outstanding42,565,746
10 Day Avg. Volume183,450
30 Day Avg. Volume116,533
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)1.07
Price to Sales (P/S)1.10
P/FCF Ratio6.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$141.38Price Target Upside2.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)9.04
Revenue Forecast (FY)C$1.54B
Equitable Group Business Overview & Revenue Model
Company Description
Established in Toronto, Canada in 1970, EQB Inc. operates predominantly through its subsidiary, Equitable Bank, providing a comprehensive suite of personal and commercial banking services to retail and business clients across Canada. The financial...
How the Company Makes Money
EQB primarily makes money through net interest income and fee-based income generated by its banking operations. (1) Net interest income: The core earnings engine is the spread between interest earned on interest-earning assets—mainly residential m...
Equitable Group Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q3-2026)
| Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Neutral
The call describes a successful strategic acquisition that immediately diversifies revenue, increases scale, and shows early integration traction (NII +22%, non-interest revenue +55%, LUM +12%, improved NIM and strong efficiency). At the same time, management recorded a large one-time $219M acquisition provision and built additional performing and impaired provisions amid pockets of credit stress (impaired PCLs rising to 42 bps, lengthening enforcement timelines and localized pressure in residential and select commercial vintages). Management expresses confidence in provisioning and the deal thesis and expects ROTCE to continue to improve into fiscal 2026/2027, but near-term results are affected by acquisition accounting, elevated provisions, and macro/geopolitical uncertainty. Overall the positives around diversification, revenue growth, margin expansion and integration progress are tempered by meaningful credit provisions and resolution timing risks, yielding a balanced view.Positive Updates
Successful Closing and Integration of PC Financial
Closed the PC Financial transaction and integrated ~300 colleagues; achieved ~50% of the $30M annualized cost synergy target in the first month and reported the integration as seamless with early cross-sell activity.
Negative Updates
Large One-Time Acquisition-Related Provision
Recorded a $219 million day-1 performing provision on acquired credit card receivables (adjusted results exclude this), reflecting acquisition accounting and materially impacting reported provisions in Q3.
Read all updates
Q3-2026 Updates
Positive
Negative
Successful Closing and Integration of PC Financial
Closed the PC Financial transaction and integrated ~300 colleagues; achieved ~50% of the $30M annualized cost synergy target in the first month and reported the integration as seamless with early cross-sell activity.
Read all positive updates
Company Guidance
Management guided that fiscal 2026 ROE should improve from the Q3 level (Q3 ROE 10.3%; diluted EPS $2.12) with ROTCE expected in the ~12% range (Q3 ROTCE 11.1%, excluding ≈$580M of goodwill/intangibles recognized July 1). They reiterated Q4 will include the first full quarter of PC Financial (PC contributed ~$10M of earnings in July and a $219M day‑1 performing provision was booked), and said they remain on track for 2026 loan growth in the high‑single to low‑double‑digit range (now expected at the upper end). Targets include a low‑50s efficiency ratio (Q3 50.1%) while realizing cost synergies (≈50% annualized of a $30M target already achieved in month one). Key supporting metrics cited: LUM $82.5B (+12% YoY, +7% QoQ), net interest income $319M (+22% YoY/QoQ) with NIM up ~33 bps to ~2.41%, non‑interest revenue $73.9M (+55% YoY, +77% QoQ), adjusted non‑interest expenses +19% YoY/+32% QoQ, CET1 13.4%, retail deposits 29% of funding, ACL coverage ≈95 bps (50 bps excl. cards), impaired PCLs 42 bps, and a raised quarterly dividend of $0.63 (up 3% QoQ, 15% YoY).Equitable Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
43
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.04B | 3.11B | 3.34B | 3.05B | 1.66B | 1.17B |
| Gross Profit | 976.32M | 1.23B | 1.15B | 3.05B | 744.93M | 650.58M |
| EBITDA | 65.76M | 439.45M | 614.37M | 46.99M | 1.30B | 423.08M |
| Net Income | -2.45M | 265.30M | 400.56M | 445.91M | 270.18M | 292.53M |
Balance Sheet | ||||||
| Total Assets | 57.19B | 53.49B | 53.23B | 52.93B | 51.14B | 36.16B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 2.26B | 2.03B | -1.32B | 2.34B | 1.44B |
| Total Debt | 14.95B | 13.12B | 19.27B | 17.37B | 19.54B | 13.58B |
| Total Liabilities | 53.48B | 50.28B | 50.10B | 50.09B | 48.61B | 34.21B |
| Stockholders Equity | 3.70B | 3.20B | 3.13B | 2.85B | 2.53B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | -334.03M | 555.10M | -345.61M | 561.49M | -46.69M | 654.68M |
| Operating Cash Flow | -237.58M | 639.99M | -278.24M | 596.45M | 29.89M | 693.26M |
| Investing Cash Flow | 643.29M | -66.58M | 402.77M | -1.77B | -766.77M | -458.25M |
| Financing Cash Flow | -695.54M | -179.75M | -82.36M | 1.26B | 458.74M | -19.50M |
Equitable Group Technical Analysis
Positive
137.87
Price Trends
136.85
Negative
127.99
Positive
116.68
Positive
Market Momentum
-1.99
Positive
48.42
Neutral
59.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQB, the sentiment is Positive. The current price of 137.87 is above the 20-day moving average (MA) of 134.53, above the 50-day MA of 136.85, and above the 200-day MA of 116.68, indicating a neutral trend. The MACD of -1.99 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 59.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EQB.
Equitable Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$434.27M | 12.29 | 8.24% | 8.42% | -10.14% | -7.73% | |
70 Outperform | C$886.47M | 10.37 | 13.08% | 6.53% | 12.78% | 14.21% | |
69 Neutral | C$917.37M | 29.37 | 6.17% | 0.36% | 13.80% | 11.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$551.15M | 11.59 | 9.06% | 8.65% | -10.85% | -5.88% | |
62 Neutral | C$482.45M | 18.95 | 3.85% | 11.15% | -5.01% | -41.36% | |
52 Neutral | C$5.70B | -632.95 | -0.07% | 1.68% | -3.80% | -102.38% |
* Financial Sector Average
TSE:EQB
Equitable Group
132.92
42.71
47.35%
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Equitable Group Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
EQB’s PC Financial Acquisition Drives Growth, Diversifies Revenue and Deposits in Q3 2026
Positive
Aug 26, 2026
EQB Inc. reported third-quarter 2026 results that reflect one month of contribution from its newly acquired PC Financial business, showing adjusted diluted EPS of $2.12 and adjusted revenue of $393 million, alongside an adjusted return on equity o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.